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8. In September 2008, an electronics manufacturer (JEC) sold capacitors to its distributors for JD250 per capacitor. The sales level of 3000 capacitors per month was less than the single-shift capacity of 4400 capacitors at its Sahab plant. Variable production costs were JD100 per capacitor, and fixed production costs were JD200000 per month. In addition, variable selling and distribution support costsare JD20 per capacitor, and fixed selling and distribution support costs are JD62500 per month. At the suggestion of the marketing department, in October 2008, JEC reduced the sales price to JD200 and increased the advertising budget by JD17500. Sales are expected to increase to 6800 capacitors per month. If the demand exeeeds the single-shift capacity, the plant needs to be operated in two shifts which will increase monthly fixed production costs to JD310000. Required: a. Contribution margin per capacitor in September 2008. b. The sales level in number of capacitors at which profit-to-sales ratio would be 10% in September 2008 . c. The two breakeven points for October 2008 . 1. Single-shift operations (0X4400) 2. Two-shift operation (4400 X8800) d. Actual profit-to-sales ratio in September 2008. c. The sales level in number of capacitors at which the profit-to-sales ratio in October 2008 is the same as the actual profit-to-sales natio in September 2008

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